Radio Frequency IDentification (RFID) systems typically include RFID tags and RFID readers (the latter are also known as RFID reader/writers or RFID interrogators). RFID systems can be used in many ways for locating and identifying objects to which the tags are attached. RFID systems are particularly useful in product-related and service-related industries for tracking large numbers of objects being processed, inventoried, or handled. In such cases, an RFID tag is usually attached to an individual item, or to its package.
In principle, RFID techniques entail using an RFID reader to interrogate one or more RFID tags. The reader transmitting a Radio Frequency (RF) wave performs the interrogation. A tag that senses the interrogating RF wave responds by transmitting back another RF wave. The tag generates the transmitted back RF wave either originally, or by reflecting back a portion of the interrogating RF wave in a process known as backscatter. Backscatter may take place in a number of ways.
The reflected-back RF wave may further encode data stored internally in the tag, such as a number. The response is demodulated and decoded by the reader, which thereby identifies, counts, or otherwise interacts with the associated item. The decoded data can denote a serial number, a price, a date, a destination, other attribute(s), any combination of attributes, and so on.
An RFID tag typically includes an antenna system, a power management section, a radio section, and frequently a logical section, a memory, or both. In earlier RFID tags, the power management section included an energy storage device, such as a battery. RFID tags with an energy storage device are known as active tags. Advances in semiconductor technology have miniaturized the electronics so much that an RFID tag can be powered solely by the RF signal it receives. Such RFID tags do not include an energy storage device, and are called passive tags.
A problem has been that legitimate supply chain activities are undermined by illegitimate activities. This problem is now described in more detail.
FIG. 1 is a conceptual drawing of a legitimate supply chain 110. Various links 120, 130, 140, 150, 160, 170, 180 are shown as circles, partially overlapping at nodes to conceptually suggest a chain. Each one of these links shows a possible representative activity. A supply chain may have any number of links, similar or different than the links of chain 110, and so on.
Link 120 is for a manufacturer 120, which manufactures an item 125. Item 125 can be anything that is bought and sold for money, such as a consumer good, a component for a consumer good, and so on. Item 125 travels within the chain according to the general direction of arrow 127. For example, item 125 can be transported according to transportation links 130 and 140, and then stored in a warehouse 150. Warehouse 150 can serve as a distribution center, from where item 125 can be directed, via another transport link 160, to a desired retail outlet 170. While there, it can be bought by consumer 180, for money 185.
Money 185 ultimately pays for item 125. Here money 185 is shown traveling within chain 110 according to the general direction of arrow 187, opposite of arrow 127, for paying for every one of the activities and services of chain 110. Payment, however, need not be made explicitly at each node between successive links. Items can be manufactured and delivered across links according to supply agreements, while payment is made according to arrangements specified in related legal agreements.
FIG. 2 is a conceptual drawing of supply chain 110, further showing a domain 210 of illegitimate activities that undermine legitimate supply chain 110. Activities in domain 210 are sometimes called gray market activities, and include storing and transporting 211. In addition, counterfeiting 213 results in a counterfeit item 215 in domain 210.
Domain 210 also includes unauthorized overproduction 216 by a manufacturer 120. That is, even a legitimate manufacturer 120, after fulfilling an order to manufacture a certain supply of items 125, manufactures more of them and sells them in the gray market. Domain 210 can also include theft 226 from any link in chain 110, which results in item 125 being diverted into the gray market.
Items emerge from illegitimate domain 210 by a number of activities, such as introduction or reintroduction 237 into legitimate supply chain 110, fraudulent returns 238 by some posing as consumers, and direct sales 239 to consumers 180.
The illegitimate activities of domain 210 hurt honest businesses, and in turn consumers in the form of higher prices.
The problem of introduction or reintroduction 237 and fraudulent returns 238 is now described in more detail.
FIG. 3 is a conceptual diagram showing an offered transaction 300 at a link 310. Link 310 can be a link of a legitimate supply chain, or at an inspection point, such as a Customs Office. A party 321, who is also known as an offeror, offers according to arrow 327 an item 325 that is also known as the proffered item. Proffered item 325 is offered for acceptance by an agent or operator 311 within link 310.
Agent 311 does not know whether proffered item 325 is legitimate or not. Agent 311 may be concerned about accepting items in such transactions, if the items are illegitimate. Indeed, the activity of offering (arrow 327) could be part of the legitimate progress 127 of item 325 within a supply chain, or a fraudulent import, or a fraudulent reintroduction 237, or even a fraudulent return 238.
The concern of agent 311 is shown by thought bubble 343. Should he accept (387) the proffered item 325? Should he also pay or promise to pay money 385 for it, or give it an import license 386?
Note that the concern is not alleviated by the fact that proffered item 325 is even tagged by an RFID tag 320. The concern can also be whether tag 320 is legitimate, or stolen, counterfeit, cloned by replicating the data of a legitimate tag, etc.